Why documentation matters

Loan servicer errors—misapplied payments, wrong payoff figures, or incorrect reporting to credit bureaus—can change your balance, trigger fees, or hurt your credit score. Clear, organized evidence speeds investigations, reduces the chance of repeated errors, and gives you standing if you need to escalate to regulators or a lawyer. In my 15 years helping clients, the borrowers who win corrections are the ones who bring complete, dated records and follow formal dispute steps.

Legal tools and timelines to know

  • Qualified Written Request (QWR): For mortgage servicers, use a QWR under RESPA to request information and dispute servicing errors. See CFPB guidance on QWRs for specifics (consumerfinance.gov).
  • Credit-report disputes: If the error appears on your credit report, file a dispute with each credit bureau and provide the same evidence you gave the servicer (see CFPB credit-report resources and FTC guidance).
  • Written timelines: Send disputes by certified mail with return receipt; document call dates, names, and summaries. Regulators and bureaus use these timestamps to measure compliance.

Evidence checklist (what to gather and why)

1) Communication logs

  • A date-ordered log listing every call, email, chat, or letter: date/time, representative name/ID, summary, and outcome. This shows attempts to resolve and helps spot contradictory statements.

2) Written communications

  • Copies (screenshots or PDFs) of emails, portal messages, letters, and the servicer’s responses. Save originals for mailed letters.

3) Payment evidence

  • Bank account statements (showing ACH/online payments), cashier’s checks, money order receipts, and payment confirmations from the servicer. Highlight transaction date, amount, and reference number.

4) Account statements and payoff quotes

  • Full monthly statements, payoff letters, escrow analyses, and revised payoff amounts. Compare successive statements to show changes or miscalculations.

5) Loan contract and servicing agreements

  • Your original loan note, mortgage, promissory note, and any addenda or modification agreements. Errors often arise from misreading modification terms.

6) Billing histories and transaction ledgers

  • If the servicer provides a ledger, download it. Use it to trace how each payment was applied (principal, interest, escrow, fees).

7) Credit reports

  • Get copies of your three major credit reports (Experian, Equifax, TransUnion) and capture screenshots or PDFs of the error as reported. See FinHelp’s guide to credit-report disputes for building evidence and tracking resolutions.

8) Third-party records and corroboration

  • Payment processor confirmations, bank statements, employer payroll records (for wage garnishments), or app logs proving attempted payments.

9) If applicable: recorded calls or notes from calls

  • Confirm state recording laws before relying on recorded calls. Always note call date, time, rep name, and call ID.

10) Evidence of harm

  • Notices of fee assessments, foreclosure notices, loan underwriting denials, or credit-score impacts tied to the error.

How to package and submit your evidence

  1. Create a cover letter
  • Summarize the error plainly: what happened, when, and the correction you seek (adjust balance, remove late mark, reapply payment). Keep it one page with a clear request.
  1. Attach an indexed evidence bundle
  • Number or label exhibits and reference them in the cover letter (Exhibit A: bank statement 06/01/2024).
  1. Send by certified mail and email
  • Mail to the servicer’s designated dispute or compliance address; send a copy to the loan officer or loss-mitigation team. If the servicer has a secure portal, upload the same package there and save confirmation.
  1. Use formal dispute channels when required
  • For mortgages, include a QWR to invoke RESPA protections. For credit-report errors, file disputes with each bureau and attach proof (see our step-by-step dispute letter template).
  1. Track responses and deadlines
  • Note the date you mailed the dispute. Many laws or servicer policies require a response within 30–45 days; track whether the servicer investigated and corrected the item.

When to escalate

  • No timely response or unsatisfactory resolution: file a complaint with the Consumer Financial Protection Bureau (CFPB) and state banking regulator. The CFPB’s complaint portal accepts documentation and creates a record (consumerfinance.gov).
  • Significant or ongoing monetary harm: consult a consumer protection attorney—especially if foreclosure is improperly initiated.

Common mistakes people make

  • Relying on verbal promises only: always get confirmations in writing.
  • Sending incomplete evidence: a single missing payment receipt or wrong date can derail your claim.
  • Waiting too long: preserve all records now; some remedies depend on prompt disputes.

Real-world example (short)

A homeowner I worked with had a lender apply a large payment to fees rather than principal. We compiled bank records, the servicer payment confirmation, and consecutive statements showing the ledger mismatch. After submitting a QWR plus the indexed evidence bundle by certified mail, the servicer corrected the ledger and removed two wrongful late fees within 21 days.

Quick FAQs

  • How long will a servicer take to investigate? Response timelines vary; many servicers respond in 30–45 days, but use certified mail dates as your proof of timely dispute.
  • Can I record calls with my servicer? Check state law. If you can’t record, keep detailed call logs and ask for a call ID or representative number.
  • Should I dispute directly with credit bureaus too? Yes—if the error is on your credit report, file bureau disputes in parallel and include your evidence.

Helpful internal resources

Professional disclaimer

This article is educational and not personalized legal or financial advice. For unresolved errors that cause foreclosure, wage garnishment, or large monetary loss, consult a licensed attorney or a qualified housing counselor.

Authoritative sources

Next steps

Start today by assembling a dated communications log and pulling the last 12 months of statements and payment records. If you want, use our evidence checklist above to build an indexed packet before you call or write the servicer.